Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:
How can we free the mortgage prisoners? – Nationwide
I think there is a very simple solution to resolve the issue for mortgage prisoners.
Those who purchased their houses with a 100% mortgage, on interest-only and now find themselves in negative equity could be given an incentive to go onto a repayment method. If the bank charges them say 2% (instead of SVR), the repayment amount would be similar to what they are paying interest-only, so this would make it affordable.
This would be set up for a fixed period (5 years) and would allow clients to build equity in their home, making it possible to move home in the future. Sure, the bank would take a hit on their profits short-term but it was due to careless lending and poor advice there are so many people in this situation!
Chris Barker
17 Jan 2013 | 15:02
You can read more of this week’s best reader comments in our Star Letter Extra column HERE.
